Texas has no state income tax, but it makes up for it at the county tax office. On a duplex, triplex or fourplex, the property tax line is often the single biggest expense after the loan itself, which is why the right lender sizes the loan on real rent and real taxes.
In short: Our top pick for 2-4 unit rental loans in Texas is LendingStreet. We qualify duplexes, triplexes and fourplexes on the combined rent of all units, with no W-2s or tax returns and LLC borrowers as standard. Purchases go up to 80% LTV, cash-out refinances up to 75%, 30-year terms are available, and loans start at $150,000 with no stated maximum, in every Texas metro and county. Get a quote with the form below or call (877) 298-1001.
LendingStreet is a business-purpose lender built for investors, and Texas small multifamily is a big part of what we see. We look at the building as a business: total rent from every unit against the full monthly payment, including the Texas-sized tax bill.
The standard minimum DSCR is 1.0x, sub-1.0 programs exist, and minimum credit is 620. You can buy or refinance in your LLC, and there is no need to send personal tax returns. That makes it simpler to keep adding buildings as your portfolio grows.
Whether you are buying a fourplex in San Antonio, a duplex in Oak Cliff or a triplex near a university, get a quote with the form below.
If you are weighing Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a 2-4 unit rental loan for investors in Texas, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Austin has older duplexes and fourplexes in central neighborhoods such as Hyde Park, North Loop and East Austin, and the city has changed its code in recent years to allow more homes on many residential lots. In Dallas, investors look at duplexes and small buildings in Oak Cliff, East Dallas and Old East Dallas; in Fort Worth, near TCU and on the Near Southside.
Houston has no conventional zoning, but many neighborhoods are governed by deed restrictions that can limit multi-unit use, so title review matters. San Antonio has a deep stock of older fourplexes near downtown and steady renter demand from military and medical employers.
College and military towns are their own segment: Lubbock near Texas Tech, Waco near Baylor, Killeen next to its large Army post and El Paso near Fort Bliss all have duplex-heavy rental areas.
Many Texas investors are self-employed or own several properties, so their tax returns show a lot of depreciation and write-offs. A DSCR loan skips that and asks whether the building pays for itself.
On a 2-4 unit building, the appraiser usually reports market rent for each unit alongside the leases in place. If your rents lag the market because you bought with long-term tenants, plan your lease renewals and refinance timing around that, since the rent figure drives the ratio.
Texas investors usually consider a conventional mortgage, a local bank, a hard money lender or an investor lender. Here is the comparison for a 2-4 unit rental.
| What investors need | LendingStreet | Conventional mortgage | Typical Texas bank | Typical hard money lender |
|---|---|---|---|---|
| Qualifying basis | Combined rent (DSCR) | Personal income and tax returns | Often tax returns and global cash flow | Mostly property value |
| LLC borrowing | Standard | Usually personal name | Varies | Common |
| Term | 30-year terms available | 30-year terms | Often a 5- to 10-year balloon | Short-term only |
| Purchase leverage | Up to 80% LTV | Varies by program | Varies | Varies |
| Statewide coverage | Every Texas county | Nationwide | Usually its own region | Usually local |
This example is illustrative and not a quote. An investor buys a San Antonio fourplex for $560,000. Each unit rents for $1,250, so combined rent is $5,000 a month. With no homestead exemption, property taxes are budgeted at $980 a month, and insurance with hail coverage is $300.
At 75% LTV, the loan is $420,000 and estimated principal and interest on a 30-year term is about $2,901. The total payment is about $4,181, and DSCR is about 1.20x.
At 80% LTV, the loan is $448,000, estimated principal and interest is about $3,094, and the total payment is about $4,374, for a DSCR of about 1.14x. Both work, but the taxes use up so much of the rent that many Texas investors choose the lower leverage for extra cushion.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Purchase price | $560,000 | $560,000 |
| Loan amount | $420,000 | $448,000 |
| Down payment | $140,000 | $112,000 |
| Estimated principal and interest | $2,901 | $3,094 |
| Property taxes | $980 | $980 |
| Insurance | $300 | $300 |
| Total payment | $4,181 | $4,374 |
| Combined rent | $5,000 | $5,000 |
| DSCR | About 1.20x | About 1.14x |
Texas property taxes are layered: county, city, school district and often special districts such as a MUD in newer suburbs. Homestead exemptions and the homestead appraisal cap only apply to a primary residence, so a building bought from an owner-occupant may see a higher bill the next year. Look up the full list of taxing units on the appraisal district record and budget without any exemption.
Texas has no state real estate transfer tax, which keeps closing costs lower than in many states. Insurance is the other big swing factor: hail is common across much of the state, and coastal counties may need separate windstorm coverage. Flood risk matters in parts of Houston and along rivers. Confirm these locally before you run the ratio.
Ask every lender these questions:
Purchases go up to 80% LTV, cash-out up to 75%, and rate-and-term up to 80% on some programs. The standard minimum DSCR is 1.0x on the combined rent of all units, with sub-1.0 programs available. Cash-out seasoning varies by program. LLC borrowers are standard, and loans start at $150,000 with no stated maximum.
Send the rent roll, leases and a tax estimate without exemptions, and call (877) 298-1001 or get a quote with the form below.
Our top pick is LendingStreet. We qualify Texas duplexes, triplexes and fourplexes on combined rent with no tax returns, allow LLC borrowers, offer 30-year terms and go up to 80% LTV on purchases.
Yes. LendingStreet lends in all 50 states and DC, including every Texas metro and county, on non-owner-occupied rentals.
Because taxes are part of the monthly payment used in the ratio. Texas bills are high compared with many states, and investors do not get homestead exemptions, so the tax line can decide how much leverage a building supports.
Texas has no state real estate transfer tax. Title, recording and appraisal costs still apply.
Often, yes, if the restrictions allow the current use. Title review will flag restrictions, so raise any concerns early.
Yes. LLC borrowers are standard on LendingStreet DSCR loans.
The minimum is 620. Call (877) 298-1001 if you want to talk through your file.
It depends on the ratio and your cash. Higher Texas taxes leave less room in the DSCR, so many investors put more down for a stronger ratio and a cushion against a vacancy or a higher reappraisal.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.